TERMS AND CONDITIONS
RFID TAGSOURCE, LLC is referred to as "RFID TAGSOURCE"
and the person or company purchasing as "CUSTOMER" in this document.

1. QUOTATION. Price quotations by RFID TagSource are valid for 30 days from date of issue.

2. ACCEPTANCE. Unless otherwise stated in the Order, prices quoted in this Order are subject to acceptance within thirty (30) days of date on the Order.

3. PAYMENT. Payment of this Order is due in full upon placement of order unless otherwise indicated. Failure to pay for the Order when due shall result in a late charge of 1.5% per month on the unpaid balance. This shall be in addition to any other remedies permitted to RFID TagSource under law or equity.

4. DELIVERY. Any indicated dates of delivery are approximate only, but RFID TagSource will attempt to meet them where possible. RFID TagSource shall not be liable for delays in manufacturing or delivery or failure to manufacture or deliver due to any event in the nature of force majeure or any cause beyond RFID TagSource's reasonable control. RFID TagSource will not be bound by any penalty clause contained in any specification or order submitted by the Customer unless such clause is specifically agreed to in writing by an authorized officer of RFID TagSource. Delivery shall be made FOB point of shipment unless otherwise agreed to in writing by an authorized officer of RFID TagSource. Delivery to the initial carrier shall constitute delivery to Customer. RFID TagSource's responsibility ceases upon delivery, in good order, to such, carrier and all goods are shipped at the Customer's risk. In the event of damage or loss, RFID TagSource will cooperate with Customer in presenting reasonable claims against the carrier involved. RFID TagSource shall endeavor to ship the precise quantity of product ordered, but reserves the right to ship a 10% lesser or greater quantity of labels, in which event the order price shall be correspondingly adjusted.

5. CHANGES. RFID TagSource will not accept changes in specification unless such changes are requested in writing and approved by RFID TagSource and the Customer agrees to pay an additional sum fixed by RFID TagSource.

6. CANCELLATION. Any order placed with, and accepted by, RFID TagSource is not subject to cancellation unless an agreement to the contrary has been executed by an authorized officer of RFID TagSource. Cancellations are subject to reasonable charges based upon expenses already incurred and commitments made by RFID TagSource.

7. ASSIGNMENT. No contract to purchase goods from RFID TagSource may be assigned by the Customer without prior consent of RFID TagSource in writing by an authorized officer.

8. TAXES. Unless otherwise stated in the proposal, prices quoted by RFID TagSource do not include any applicable city, county, state, or federal taxes. Any of these taxes to which a transaction is subject are to be borne by the Customer even if collection by RFID TagSource is required.

9. DAMAGES. RFID TagSource's total liability for damages related to the performance of, or failure to perform, this Order shall be limited to the amount of the contract price, and in no event shall RFID TagSource be liable for any special, indirect, consequential or punitive damages.

10. DEFAULT. If the Customer defaults in performing any of its obligations to RFID TagSource under this Order or any other Orders, RFID TagSource may at its option and without incur-ring any liability thereby elect to terminate this Order and to terminate any or all other Orders with the Customer. Furthermore, RFID TagSource shall have a right to all damages sustained, including loss of profits.

11. MISCELLANEOUS. The provisions of this Order shall be governed and construed in accordance with the laws of the State of New Jersey. This instrument sets forth the entire agreement of the parties and all prior dealings between the parties shall be superseded by and merged into this instrument. No provisions of this instrument shall be waived, changed, terminated, modified, discharged or rescinded, except by a writing signed by the parties. No waiver of any breach of any provision shall constitute a waiver of any similar or dissimilar breach or shall constitute an amendment, or modification of this Order. If any provision of this Order shall be held to be unenforceable or inapplicable, such holding shall not affect the enforceability of any other provision of this Order. The provisions of this Order shall bind and ensure to the benefit of the parties and their heirs, executors, administrators, successors and (subject to any restrictions, or assignments set forth) assigns. In the event matters arise which are not covered herein, the terms of the Uniform Commercial Code as adopted in New Jersey will apply.

12. LIMITED WARRANTY. RFID TAGSOURCE SHALL HAVE NO LIABILITY TO CUSTOMER WITH RESPECT TO ANY DEFECT IN THE PRODUCT CAUSED BY IMPROPER STORAGE, USAGE OR OTHER CONDITIONS NOT WITHIN THE CONTROL OF RFID TAGSOURCE, AS A CONDITION OF THIS WARRANTY. RFID TAGSOURCE REQUIRES THAT THE PRODCT BE STORED UNDER PROPER TEMPERATURE & HUMIDITY CONDITIONS. RFID TAGSOURCE EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES INCLUDING THOSE OF MERCHANTABILITY AND FITNESS WITH RESPECT TO THE PRODUCT THE CUSTOMER'S REMEDIES. IN THE EVENT OF A BREACH OF THE EXPRESS WARRANTY SET FORTH ABOVE SHALL BE LIM¬ITED TO REPAIR AND/OR REPLACEMENT OF ANY DEFECTIVE PRODUCT, THE CHOICE OF WHICH SHALL BE WITHIN RFID TAGSOURCE'S SOLE DISCRETION. RFID TAGSOURCE SHALL HAVE NO LIABILITY TO ANY PARTY, INCLUDING CUSTOMER, FOR ANY CONSEQUENTIAL DAMAGES FROM THE USE OF LABELS FROM THIS ORDER.

13. RETURNS. On all returns, RFID TagSource will charge a $30 restocking fee or 10% of the value of the return, whichever is greater. The Customer will be responsible for all inbound and outbound freight on all returns. No returns will be accepted without proper authorization and , no returns will be allowed after 90 days from date of invoice. Returned merchandise must be in saleable condition.